Effect of Protection Policies of Government on Production of Sunflowers Seed in Iran

Per capita vegetable oil consumption in Iran is 16.6 kg. and this is more than average per capita consumption in the word. As a result, domestic production of vegetable oil is not enough and a major part of vegetable oil is imported and the country has become one of major importers of oilseeds such as corn and soybeans. To reduce imports, the government has pursued policies to strengthen farmer’s incentive to produce oilseeds. The policies include input subsidy and buying products at guaranteed prices.The objectives of the study were to determine nominal and effective protection rates for the period of 1986-2006 and to estimate supply function. The results of the study revealed that during the first decade under study, government protection was negative while during the second decade the protection became positive, On the whole, protection policies have not been effective as such to cause increase in supply of oilseeds products.